How to Manage Your Personal Finances

Talking about personal finances can be a drag for some because it is hard to take this forward in practice. But if you are the type of person who struggles to make ends meet, stretches your paycheck, comes back from vacation asking a friend for a loan, or worries about not being able to save for the future, this article is just what you need!

Let’s Talk About Se… (Personal Finances) Baby!

It all comes down to learning how to organize your financial resources and formulating a plan to manage them in order to achieve a specific goal.

Inescapably, we all need financial stability to be independent and at peace. To achieve that, besides discipline, you need to make efficient and effective decisions about what to do with the money you earn. In other words, what you spend it on, how much and how you save, whether you want to invest it in a project or business, what to do with the debts you have, if it may be worth considering borrowing money from a bank, or maybe buying on credit, among other things.

The key is to have a clear financial plan so you can make decisions and reach your financial goals, whether it’s saving for education, housing, and retirement, managing your debts, investing in real estate, or creating savings funds, all while ensuring your financial peace.

If you are consistent and develop a savings habit, you’re already halfway there. Are you ready to get started?

Understand Your Budget

The first thing you need to be clear on is your budget, that is, how much money comes in each month and what your expenses are. This will help you eliminate unnecessary expenses and ensure you have enough money to cover all your payments, avoiding overspending. It’s all about learning to manage your resources efficiently.

Plan Your Savings

Once you have a clear goal, like saving for education, opening your own bar, or even paying taxes, you need to start setting short-, medium- and long-term goals. After setting a budget and goals, allocate a percentage of your income to savings. This is crucial and requires discipline, as well as making a commitment to yourself. In fact, a savings fund can turn into a financial cushion when you least expect it, helping you cover essential expenses for at least a few months in case something unexpected happens.

Reduce Debts and Pay Them Off in the Short Term (So Interest Doesn’t Eat You Alive)

We all have debts, especially with our credit cards! It is almost inevitable to take on these obligations, whether with the bank or with a friend who lent you money when you needed it most. However, part of handling debt is paying it off or returning the money within a set timeframe, usually with added interest. If that interest piles up, it can end up wrecking your personal finances, turning you into a slave to those outstanding balances. 

Be Careful of Impulse Buying!

We all feel tempted to take a trip, buy a motorcycle, get a tattoo, grab the latest bar kit, or go to a nice restaurant, but… hold on for a second: Is this vital for me? Will it affect my savings goals?

1. Keep your personal and business finances separate: Maintain separate bank accounts to avoid confusion and make accounting easier.

2. Take advantage of high-demand periods: As a bartender, you’re likely to earn more on weekends or during special events. Use these periods to save or invest.

3. Invest in your education: Ongoing training is key in the hospitality industry. Invest in courses or workshops to improve your skills and boost your income.

4. Diversify your income: Consider offering catering services, creating industry-related products, or even starting a side business to reduce your reliance on a single source of income.

5. Take advantage of tax deductions: As an entrepreneur, you can deduct business-related expenses such as supplies or equipment. Consult with a tax advisor to make the most of these deductions.

6. Maintain a good relationship with your suppliers: Negotiate prices and payment terms with your suppliers to optimize your costs and cash flow.

7. Create an emergency fund: As a bartender entrepreneur, it is important to have a financial cushion to cover unexpected expenses or periods of low demand.

8. Invest in marketing and promotion: Invest in marketing strategies to attract and retain clients, increase your income, and grow your business.

9. Stay financially disciplined: Financial discipline is key for long-term success. Keep detailed financial records and adjust your spending habits as necessary.

Remember, financial planning is an ongoing process. Stay informed, adjust your strategies when needed, and always seek professional advice when necessary. Good luck!

Technology for Finance: The Best Personal Finance Apps

The following apps can help you better navigate your finances and manage your money better:

1. Money Manager Expense & Money: the easiest way to manage personal finances

  

Money Manager is the #1 financial planning, review, expense tracking, and personal asset management app for Android and iOS. 

Practically, it makes managing personal finances as easy as pie. 

You can record your personal and business financial transactions, generate spending reports, review your daily, weekly, and monthly financial data, and manage your assets with Money Manager’s spending.

 

Also, you can review your transactions with filtering options, review your expenses with improved and well-organized charts, set a monthly budget for each category, save receipts or memories, review monthly transactions in one place, manage savings, insurance, and even loans, and real-stare and review asset trends in your chart.  

Get it on Google Play or the App Store.

2. Bluecoins: Finance Made Easy 

Bluecoins is an incredibly simple finance app with an excellent expense tracker, budget, and money manager tool. 

It is a complete reporting and analysis app to manage money, expenses, income, and budget. 

Use it for personal finance, as a family budget planner, or even for a small business. 

Seamlessly generate reports of monthly expenses, manage a family budget with your spouse, or export your finance records into spreadsheets/pdf. Plus, it is easy!

You will be amazed at how quickly you can become a finance and budget expert and take control of your money right now. 

Get it on Google Play or the App Store.

Spendee

Spendee is the only app that gets your money into shape. You will have perfect control over all your cash expenses, bank accounts, E-Wallets, and crypto wallets. Also, you can get a quick overview of your total income and expenses at a glance and in one place, and the most important thing: you’ll use your smart budget to save money for a new car, dreamy vacation, education, or even open your own bar. 

Get it on Google Play or the App Store.

Three Websites to Learn More about Personal Finances

1. NerdWallet

Make smarter financial decisions with “nerds” by your side thanks to unlimited 1:1 advice from a Certified Financial Planner. 

2. The Balance Money

It is home to experts who provide clear, practical advice on managing your money. Every day, they publish news, how-to guides, and product reviews to help you make sense of every aspect of your financial life.

3. Personal Finance by Forbes and Financial Matters

Smart tips to get you on the right financial track

Bonus: Useful Podcasts and YouTube Channels

The Dave Ramsey Show

You’ll learn how to handle money, career advice, navigating relationships, plus tons of other life-changing content.

Planet Money (NPR)

This program offers stories, interviews, and daily life examples to provide insights about personal finances.

Radical Personal Finance

A podcast to help people achieve financial freedom through creative financial strategies and lifestyle design. 

The Financial Diet

The number one destination for women to talk about money.